A GUIDE TO SELECTING A GUIDE TO SELECTING THE BEST PROJECT THE BEST PROJECT DELIVERY METHOD DELIVERY METHOD

FOR AIRPORTS FOR AIRPORTS

Ali Touran, Ph.D., P.E., F. ASCE, Northeastern UniversityAli Touran, Ph.D., P.E., F. ASCE, Northeastern University

This presentation is based on This presentation is based on research conducted for the research conducted for the

ACRP-funded project “ACRP-funded project “A01-05: A A01-05: A Guidebook for Airport Capital Guidebook for Airport Capital

Project DeliveryProject Delivery.”.”

BackgroundBackground

Project TeamProject Team

Ali Touran, Northeastern Univ., P.I.Ali Touran, Northeastern Univ., P.I. Douglas D. Gransberg, Univ. of Douglas D. Gransberg, Univ. of

OklahomaOklahoma Keith R. Molenaar, Univ. of ColoradoKeith R. Molenaar, Univ. of Colorado Payam Bakhshi, Northeastern Univ.Payam Bakhshi, Northeastern Univ. Kamran Ghavamifar, Northeastern Univ.Kamran Ghavamifar, Northeastern Univ.

ObjectiveObjective Project Delivery MethodsProject Delivery Methods• InterviewsInterviews

• Pertinent IssuesPertinent Issues

• Selection SystemSelection System

• System validationSystem validation

EXAMPLE APPLICATIONEXAMPLE APPLICATION

OutlineOutline

Develop a Guidebook Develop a Guidebook for airports to help for airports to help

them make the project them make the project delivery method delivery method

decision in a logical and decision in a logical and systematic way.systematic way.

ObjectiveObjective

“the comprehensive process of assigning the contractual

responsibilities for designing and constructing a project. A delivery

method identifies the primary parties taking contractual responsibility for the

performance of the work.”

AGC’s Project Delivery Systems for Construction

Project Delivery Method (PDM) Project Delivery Method (PDM) isis

Delivery Methods ConsideredDelivery Methods Considered

Design-Bid-Build (DBB)Design-Bid-Build (DBB) Construction Manager at Risk (CMR) Construction Manager at Risk (CMR)

or CM/General Contractor (CM/GC)or CM/General Contractor (CM/GC) Design-Build (DB)Design-Build (DB)

Interviewed AirportsInterviewed Airports

OutlineOutline ObjectiveObjective Project Delivery MethodsProject Delivery Methods

InterviewsInterviews

►►Pertinent issuesPertinent issues– Selection SystemSelection System– System validationSystem validation

Analysis & Critique of Pertinent Analysis & Critique of Pertinent IssuesIssues

Framework for the Framework for the PDM Selection SystemPDM Selection System

The framework for the Project Delivery The framework for the Project Delivery Method Selection System consists of Method Selection System consists of the following two tiers:the following two tiers:

Tier 1 – Analytical Approach;Tier 1 – Analytical Approach;Tier 2 – Weighted Matrix Approach.Tier 2 – Weighted Matrix Approach.

Project Delivery Decision Report

Weighted Criteria Decision Matrix

Advantages/Disadvantages

Selection FrameworkSelection Framework

Tier 2 SelectionTier 2 Selection

Delivery Method Considered

Project Goals

Project Description

Tier 1 SelectionTier 1 Selection

Tier 1: Analytical ApproachTier 1: Analytical Approach

Advantages/Advantages/DisadvantageDisadvantages of the s of the PDMsPDMs

Tier 2: Weighted Matrix Tier 2: Weighted Matrix ApproachApproach

ValidationValidation

Testing the PDM selection system Testing the PDM selection system internally;internally;

Contact the interviewees for feedback;Contact the interviewees for feedback; Panel members’ evaluation of the Panel members’ evaluation of the

system;system; Applying the selection system to a real-Applying the selection system to a real-

life project.life project.

Project ExampleProject Example

Tier 1. Analytical ApproachTier 1. Analytical Approach Tier 2. Weighted Matrix ApproachTier 2. Weighted Matrix Approach

Project Example – Tier 1Project Example – Tier 1

Step 1. Create Project DescriptionStep 1. Create Project Description Step 2. Define Project GoalsStep 2. Define Project Goals Step 3. Review Go/No-Go Decision Step 3. Review Go/No-Go Decision

PointsPoints Step 4. Review Advantages & Step 4. Review Advantages &

DisadvantagesDisadvantages Step 5. Choose Most Appropriate PDMStep 5. Choose Most Appropriate PDM Step 6. Document ResultsStep 6. Document Results

Project Example – Tier 1Project Example – Tier 1Step 1. Create Project Description Step 1. Create Project Description

Project Name:Project Name: Logan International Airport Central Parking Logan International Airport Central Parking Garage Renovation and ExpansionGarage Renovation and Expansion

Owner:Owner: Massachusetts Port Authority (Massport) Massachusetts Port Authority (Massport)

Location:Location: Logan International Airport, East Boston, MA Logan International Airport, East Boston, MA

Major Features of Work:Major Features of Work: •Add 3 new levels to the garage. New stair towers, new façade;Add 3 new levels to the garage. New stair towers, new façade;•Install pin (mini) piles to support new structural elements;Install pin (mini) piles to support new structural elements;•Install three new vehicular bridges to existing west garage;Install three new vehicular bridges to existing west garage;•Associated utility relocations.Associated utility relocations.

Estimated Budget:Estimated Budget: $217,000,000$217,000,000

Estimated Project Delivery Period:Estimated Project Delivery Period: 3 years3 years

Source(s) of Project Funding:Source(s) of Project Funding: Parking revenues (bonds Parking revenues (bonds secured by parking revenues)secured by parking revenues)

Project Example – Tier 1Project Example – Tier 1Step 1. Create Project Description Step 1. Create Project Description

Major Challenges:Major Challenges:

•Maintaining traffic and pedestrian flow;Maintaining traffic and pedestrian flow;

•Safety – contractor and general public;Safety – contractor and general public;

•Construction phasing to maintain adequate Construction phasing to maintain adequate temporary parking.temporary parking.

Project Example – Tier 1Project Example – Tier 1Step 2. Define Project Goals Step 2. Define Project Goals

1.1.Effectively renovate existing structure;Effectively renovate existing structure;

2.2.Provide more parking spaces;Provide more parking spaces;

3.3.Improve pedestrian and traffic flow in Improve pedestrian and traffic flow in garage;garage;

4.4.Deliver project on budget;Deliver project on budget;

5.5.Deliver project on schedule;Deliver project on schedule;

6.6.Safe project.Safe project.

Project Example – Tier 1Project Example – Tier 1Step 3. Review Go/No-Go Decision Points Step 3. Review Go/No-Go Decision Points

Project Level IssuesProject Level Issues1. Project size1. Project size2. Schedule Compression2. Schedule Compression3. Schedule growth control3. Schedule growth control4. Early cost precision4. Early cost precision5. Cost control5. Cost control6. Risk management / 6. Risk management /

allocationallocation7. Life cycle cost7. Life cycle cost8. Maintainability8. Maintainability

Agency Level IssuesAgency Level Issues

9.9. Airport experience / staff Airport experience / staff capabilitycapability

10.10.Airport control of projectAirport control of project

11.11.SecuritySecurity

12.12.Control impact on passengers Control impact on passengers and operationsand operations

13.13.Third party stakeholder input Third party stakeholder input to design and constructionto design and construction

Public Policy/Regulatory Public Policy/Regulatory IssuesIssues

14.14.Competition and local talentCompetition and local talent

15.15.DBE/small business impactDBE/small business impact

16.16.Legal and statutory Legal and statutory constraintsconstraints

17.17.Sustainability and LEED Sustainability and LEED certificationcertification

Other IssuesOther Issues

18.18.Adversarial RelationshipsAdversarial Relationships

19.19.Construction ClaimsConstruction Claims

Project Example – Tier 1Project Example – Tier 1Step 4. Review Project Delivery Method Step 4. Review Project Delivery Method Advantages and Disadvantages – 19 Issues Advantages and Disadvantages – 19 Issues

Step 5. Choose the Most Appropriate PDMStep 5. Choose the Most Appropriate PDMProject Example – Tier 1Project Example – Tier 1

Step 5. Choose the Most Appropriate PDM Step 5. Choose the Most Appropriate PDM

Project Example – Tier 1Project Example – Tier 1

In light of Project Goals (from Step 2) and In light of Project Goals (from Step 2) and reviewing PDM advantages/disadvantages reviewing PDM advantages/disadvantages summary table: summary table:

It is readily apparent that CMR is a It is readily apparent that CMR is a more appropriate project delivery more appropriate project delivery

method than DBB. CMR is rated better method than DBB. CMR is rated better than DBB for 14 of the 19 issues. than DBB for 14 of the 19 issues.

Construction Manager at Construction Manager at RiskRiskConstruction Manager at Construction Manager at RiskRisk

Step 6. Document Results Step 6. Document Results

Project Example – Tier 1Project Example – Tier 1

Develop written report describing the Develop written report describing the thought processes and results for steps 1 thought processes and results for steps 1 through 5.through 5.

Although the Tier 1 analysis resulted Although the Tier 1 analysis resulted in a clear selection of CMR as the most in a clear selection of CMR as the most appropriate PDM, the same example appropriate PDM, the same example

project is used in the Tier 2 analysis, in project is used in the Tier 2 analysis, in order to provide an example to follow. order to provide an example to follow.

Project Example – Tier 2Project Example – Tier 2

Step 1. Define Selection FactorsStep 1. Define Selection Factors Step 2. Weight Selection FactorsStep 2. Weight Selection Factors Step 3. Score Project Delivery MethodsStep 3. Score Project Delivery Methods Step 4. Choose Most Appropriate PDMStep 4. Choose Most Appropriate PDM Step 5. Document ResultsStep 5. Document Results

Project Example – Tier 2Project Example – Tier 2Step 1 & 2. Select & Weight Selection FactorsStep 1 & 2. Select & Weight Selection Factors

Project Example – Tier 2Project Example – Tier 2Step 3. Score Project Delivery MethodsStep 3. Score Project Delivery Methods

Project Example – Tier 2Project Example – Tier 2Step 4. Choose Most Appropriate PDMStep 4. Choose Most Appropriate PDM

Construction Manager at Construction Manager at RiskRiskConstruction Manager at Construction Manager at RiskRisk

Highest Weighted ScoreHighest Weighted Score

Project Example – Tier 2Project Example – Tier 2Step 5. Document ResultsStep 5. Document Results

Project Delivery Decision Report Project Delivery Decision Report Outline:Outline:

• Safety of contractors & general publicSafety of contractors & general public• Executive SummaryExecutive Summary• Project DescriptionProject Description• Project GoalsProject Goals• Delivery Methods ConsideredDelivery Methods Considered• Selection FactorsSelection Factors• Weight Selection FactorsWeight Selection Factors• Score Project Delivery MethodsScore Project Delivery Methods• Delivery Method DecisionDelivery Method Decision• AppendicesAppendices

QuestionsQuestions??